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Clawback risks surge as private equity funds grapple with prolonged holding periods and macroeconomic headwinds, pushing GPs to rethink their waterfall strategies.
Businessman holding USD banknote for payment.US dollar is main and popular currency of exchange in the world. Investment and saving concept.
A CSC survey found that many LPs are pushing back on less transparent waterfall provisions.
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There could be almost $80bn of NAV in funds where carry is owed back to LPs that have backed US vehicles, according to research from Upwelling Capital Group.
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'We’re seeing more than just skepticism at both levels, it’s a general distaste for what is villainized – and sometimes mislabeled – as the private equity business model,' Holland & Knight's Bill Katz warns.
According to fresh research from Goldman Sachs, average distribution-to-paid-in multiples (DPI) for the 2019-22 vintage era is 80% lower than the equivalent 2007-14 vintage set.
Debates on increasing tax on carried interest shouldn’t ignore the wider contribution private equity brings to economies.
Speaking at an event in Hong Kong on Wednesday, the firm's head of APAC private wealth said it is 'critical' that open-end funds are valued frequently enough to assist subscriptions and redemptions.
Gen II's analysis shows talent compensation is a priority in management companies' spending.
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